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PM-KUSUM Scheme: Everything farmers need to know

PM-KUSUM Scheme: Everything farmers need to know

PM Solar Pump Yojana, better known as PM-KUSUM, helps farmers replace diesel pumps with subsidized solar power. Run by the Ministry of New and Renewable Energy (MNRE), the scheme now runs until 31 March 2027, with PM-KUSUM 2.0 on the way.

The PM-KUSUM Scheme is a central government program that subsidizes solar water pumps and small solar plants for farmers, cutting diesel and electricity bills. Farmers can install a standalone pump, solarize a grid pump, or build a small plant and sell surplus power. It is one of India’s largest solar schemes for farmers, run by the Ministry of New and Renewable Energy (MNRE). The scheme now runs until 31 March 2027, with PM-KUSUM 2.0 on the way. This page covers the components, subsidy, eligibility, application, and financing.

What is the PM-KUSUM Scheme?

If you are wondering what the PM-KUSUM Scheme is in simple terms, it is a program that shares the cost of solar pumps and plants with farmers. The full form of PM-KUSUM is Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyaan, launched by MNRE in 2019. Put simply, the scheme helps lower irrigation costs, and for some, extra income from selling power. The launch date of the PM-KUSUM Scheme was February 19, 2019, though its guidelines have since been revised.

Also Read – MSME Loan for Small Businesses

PM-KUSUM Scheme components (A, B, and C)

The scheme has three components.

ComponentCoversSuits
ASolar plants up to 2 MW on barren landFarmers selling power
BStandalone solar pumps up to 7.5 HPOff-grid farms
CSolarizing a grid-connected pumpFarms already on the grid

Most individual farmers under the PM-KUSUM Scheme pick components B or C, as they need less land and have faster approval rates.

Also Read – Fixed vs Floating Interest Rate

PM-KUSUM subsidy: How much do farmers get?

The PM-KUSUM Yojana subsidy covers about 60% of the benchmark cost for solar pumps in most states, split evenly between the central and state governments. A bank loan can fund another 30%, leaving roughly 10% for the farmer.

For example, the solar water pump subsidy on a 5 HP pump costing Rs 3 to 3.5 lakh can cut the farmer’s share to around Rs 30,000. Figures are state specific and change over time, so check your state portal. Depending on where you live, state top-ups can push the PM-KUSUM Yojana subsidy well past the base central subsidy in some regions.

Financing your share: Loan options for the farmer contribution

Even after the subsidy, most farmers still need to fund up to 30% of the costs through a loan. This gap is where financing for a solar scheme for farmers helps.

Tata Capital’s agriculture and equipment finance can fund solar pumps and panels under the PM Solar Pump Yojana, with diesel savings often helping repay the EMI. When you combine a solar water pump subsidywith the right financing options, you can usually cover up to 90% costs of a standard pump.

Who is eligible for PM-KUSUM?

Individual farmers, farmer groups, cooperatives, panchayats, FPOs, and water user associations can apply for the PM-KUSUM Yojana subsidy, though eligibility varies by component.

  • Component A needs barren or fallow land near a substation.
  • Component B suits farms with no grid connection.
  • Component C suits farms already on the grid.

How to apply for PM-KUSUM Yojana?

Always make sure you completely understand what is the PM-KUSUM Yojana for a smooth application process:

  1. Identify your component (A, B, or C).
  2. Visit the PM-KUSUM portal or your state’s nodal agency site.
  3. Register with land, bank, and pump details, then submit.
  4. Wait for approval, vendor allocation, and pay your share.
  5. Get the system installed and commissioned.

For help with the PM Solar Pump Yojana process, you can also call the helpline on 1800-180-3333.

PM-KUSUM in Maharashtra (and other states)

The PM-KUSUM Solar Yojana in Maharashtra runs on its own state portal, with separate targets and, some years, a top-up subsidy. This means that farmers can apply directly through this state channel, instead of needing the national one.

Outside Maharashtra, different states have their own portals inspired by the portal for the PM-KUSUM Solar Yojana in Maharashtra, which you can use to fill an application.

Latest PM-KUSUM updates (2026) and PM-KUSUM 2.0

The deadline for the PM-KUSUM Schemeis now extended to 31 March 2027, for projects with a power purchase agreement signed by 31 December 2025. PM-KUSUM 2.0 is expected to bring an outlay of about Rs 50,000 crore, with a 10 GW agrivoltaics component. As of mid-2026, MNRE had not notified the new solar water pump subsidy structure under 2.0. Farmers awaiting the next PM Solar Pump Yojana round should watch the official portal.

Conclusion

The PM-KUSUM subsidyacts as an effective solar scheme for farmers that covers most of the cost of a pump or plant, leaving a small, financeable share. To get started, apply through your state portal. And for further help in financing your solar water pump, explore Tata Capital’s agriculture and equipment finance.

Do note that this is general information, and subsidy amounts, eligibility, and deadlines change often, so it’s important to verify them on your state’s official portal before applying.

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FAQs

What is the full form of PM-KUSUM?

The full form of PM-KUSUM is Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyaan.

What is the PM-KUSUM Scheme?

The PM-KUSUM Scheme is a subsidy to help farmers set up solar pumps and plants to lower diesel use and boost rural earnings.

How much subsidy does PM-KUSUM give?

The PM-KUSUM Yojana subsidy covers about 60% of the benchmark cost for solar pumps in most states, split evenly between the state and central governments.

When was the PM-KUSUM scheme launched?

The launch date of the PM-KUSUM Scheme was February 19, 2019. The scheme was launched as an initiative under the Ministry of New and Renewable Energy (MNRE).

How do I apply for a solar pump?

You can apply for a solar pump by registering on your state's PM-KUSUM portal with your land and bank details.

Is PM-KUSUM available in Maharashtra?

Yes, the PM-KUSUM Solar Yojana in Maharashtra runs on its own state portal.

Is the PM-KUSUM Scheme still running in 2026?

Yes, the PM-KUSUM Scheme is active and has been extended to 31 March 2027.

Can I get a loan for my share of the cost?

Yes, many lenders, including Tata Capital, cover the gap after the solar water pump subsidy, via agri and equipment loans.

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